TMI Blog2018 (1) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the coordinate Bench of the Tribunal in the aforesaid order (supra) deleted the addition of ₹ 4,54,300/- on account of salary paid u/s 13(3); addition of ₹ 1,64,715/- on account of depreciation and ₹ 51,000/- on account of interest on loan and advances. Penalty levied by the AO and affirmed by the ld. CIT (A) is not sustainable, hence penalty levied by the AO and affirmed by the CIT (A) is ordered to be deleted and AO to pass afresh order consequent upon the decision on the issues which have been set aside to him for deciding afresh. Consequently, the appeal stands allowed. - ITA No.899/Del./2016 - - - Dated:- 25-1-2018 - SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial statements i.e. Income Expenditure Ale and balance sheet were made. All the facts / documents were also produced before A.O. The A.O was not agreed with our evidences / explanation but it is not concealment. Addition of ₹ 7,82,465/- on account of honorarium 7. We have submitting the list of person's alongwith their name, address and identity. We have filed the confirmatory letter also. Inspite of all these evidences the A.O. has ignored these evidences and started to point out technical error in the confirmation letters. If the A.O. was in doubt he can confirm the related persons by invoking section 133(6) of the Income Tax Act,1961. 8. There was no TDS liability attracts on payments as the amount w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of what may be reasonably paid for such services. 12. We have not paid excess salary. Keeping the view in mind that Principal and President of society Smt. Kiran Gupta is fetching salary of ₹ 1,12,800/- per annum only having strength of 1030 students .. The other person Sh. R.K. Gupta, secretary of the society, who is looking after all the liasioning work and overall work at school i.e. supervision and controlling of construction and repair of building, purchasing and repairing of other assets of society, visiting to Ghaziabad development authority, CBSE Board and other departments. The salary paid to Sh. RX. Gupta is very low and reasonable. Lastly, Shree Rohit Nidhi Gupta are well qualified and taking salary at very no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uary, 2 October, Foundation day, Sports seminar and other activities. Some time we have go to doctor/hospital taking the students or staff also. So all these vehicles are necessary and for society purpose. We have incurred nominal charges during the year. Total expenditure on car alongwith other traveling conveyance expenses comes to ₹ 61,730/- (29,540/-+ 32,190/-) Keeping the receipts ₹ 43,27,675/- of the school these are very nominal expenses. 15. The amount given to M/s Dev Packaging of ₹ 11,00,000/- and Sh. Sanjiv Gupta ₹ 4,00,000/- for the purchase of property by the society. The CIT (Appeal) has reduced the interest from ₹ 1,70,000/- to ₹ 51,000/- so interest levied by AO is again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000/- paid to Sanjay Gupta, one of the trustee, is also disallowed. AO found the aforesaid claim of the assessee society as deliberate concealment of income by furnishing inaccurate particulars of income and thereby levied penalty of ₹ 9,31,929/-. 3. Assessee carried the matter by way of filing appeal before the ld. CIT (A) who has partly allowed the appeal by restricting the penalty on the amount of ₹ 16,57,237/-. Feeling aggrieved, the assessee has come up before the Tribunal by challenging the impugned order passed by ld. CIT (A) . 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side to the file of AO to decide afresh after providing an opportunity of being heard. However, the coordinate Bench of the Tribunal in the aforesaid order (supra) deleted the addition of ₹ 4,54,300/- on account of salary paid u/s 13 (3); addition of ₹ 1,64,715/- on account of depreciation and ₹ 51,000/- on account of interest on loan and advances. In these circumstances, penalty levied by the AO and affirmed by the ld. CIT (A) is not sustainable, hence penalty levied by the AO and affirmed by the ld. CIT (A) is ordered to be deleted and AO to pass afresh order consequent upon the decision on the issues which have been set aside to him for deciding afresh. Consequently, the appeal stands allowed. Order pronounced in o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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